After a Rs 590-crore fraud — allegedly committed by IDFC First Bank employees and others in accounts belonging to the Haryana government — came to light last month, the Haryana State Vigilance and Anti-Corruption Bureau (SV & ACB) has now said that it has unearthed a money trail. The probe has already led to the arrest of six individuals, including two former bank staffers and a government official.We explain how the fraud was uncovered and what lies ahead for the investigation as the nexus continues to unfold.It began when the Development and Panchayat Department opened two accounts on September 26, 2025: one in IDFC First Bank with Rs 50 crore, and another in AU Small Finance Bank with Rs 25 crore. Several departments had been parking their funds in IDFC First Bank, often as one-year fixed deposits.Soon after the account opening, someone posing as an IDFC First Bank official handed over a cheque book to the department. This cheque book was later returned to the same person, who claimed that cheques were not used for scheme fund transactions.More in Explained | IDFC First Bank’s Rs 590-crore fraud: Why it highlights governance lapsesOfficials now suspect that forged cheques bearing the signatures of a former IAS officer were used to siphon funds. Suspicion grew when a senior officer attempted to withdraw money from the Rs 50 crore deposited under the Mukhyamantri Gramin Awas Yojana scheme, only to be told by bank officials that insufficient funds were available and that they did not recognise the person who had taken back the cheque book.What did the initial departmental inquiry reveal?A departmental inquiry followed. On February 11, 2026, a three-member committee was formed, and on February 18 it submitted its report, which was handed over to the SV & ACB. This report became the basis for the FIR registered on February 23 against employees of IDFC First Bank, AU Small Finance Bank, and unidentified public servants. The committee suspected forgery and procedural lapses. During the vigilance probe, department superintendent Naresh Bhuwani was arrested.Earlier arrests included Ribhav Rishi, a former branch manager at IDFC First Bank, and Abhay Kumar, a former relationship manager. Abhay’s wife, Swati Singla, and her brother, Abhishek Singla, were also taken into custody. Investigations revealed that nearly Rs 300 crore was funnelled into the account of Swastik Desh Projects, a company owned by Swati and Abhishek. Investigators claimed that Rishi, Abhay, Swati, and Abhishek “played (a) key role in the illegal activities”.Story continues below this adRegarding Naresh Bhuwani’s role, the SV & ACB told a Panchkula court that “he not only received fund directly from Swastik Desh Project in which money was siphoned off from government account but also played crucial role as middleman as revealed during course of investigation so far”. The bureau alleged that “Bhuwani played a role of middleman between the public servants and co-accused of the case” and remained in constant contact with Rishi and Abhay. It also claimed that Bhuwani and others set up Swastik Desh Projects. The superintendent allegedly received Rs 1.25 crore “illegally” from the firm’s bank account between November 13 and November 27, 2025. Of this, Rs 10 lakh was transferred to his daughter’s account, while Rs 25 lakh was allegedly used to buy a Fortuner car.The bureau said “this case requires sustained and in-depth interrogation of the accused to unearth the complete nexus of public servants, bank officials, private persons, actual beneficiaries and to understand complex conspiracy hatched as well as further execution thereof”. Investigators explained that “since bank account statements are being obtained from concerned banks and certain statements have already been received, further digital data is also being analysed”.How has IDFC First Bank responded?The bank itself acknowledged the issue. In a communication to the National Stock Exchange on February 21, IDFC First Bank reported “unauthorised and fraudulent activities allegedly carried out by certain employees at a branch in Chandigarh”. It filed a police complaint, suspended four employees, and announced plans to file additional complaints.The bank clarified that “the matter is confined to a specific group of government-linked accounts within the Haryana government operated through the branch in Chandigarh and does not extend to other customers of the Chandigarh branch”. It also stated that it was appointing an independent external agency to conduct a forensic audit.Story continues below this adAlso read | Inside the IDFC First Bank fraudThe bank added: “Despite the investigation being ongoing, the Bank has immediately honoured 100 per cent of the principal and interest claimed by the relevant government departments of Haryana, amounting to Rs 583 crore.”What lies aheadThe SV & ACB says records from IDFC First Bank show that “money was diverted from government accounts mostly to one firm namely ‘Swastik Desh Project’ in which Swati Singla and her brother Abhishek Singla were partners as per the partnership deed. The amount was further transferred to various firm accounts/private persons.” Former IDFC branch manager Rishab Rishi and former relationship manager Abhay Kumar were also found “beneficiaries”.Investigators revealed that funds were siphoned off from accounts of the Haryana School Shiksha Pariyojna Parishad, Haryana State Pollution Control Board, Haryana Power Generation Corporation, and Panchkula Municipal Corporation, before being diverted from Swastik Desh Project to “two jewellers, former branch IDFC First Bank manager Ribhav Rishi, his wife Divya Arora, Swati Singla, her brother Abhishek Singla, some government accounts and other private persons”. Call detail record analysis “revealed that these accused were in constant touch with each other and bank officials”. Investigators added that “…large scale siphoning of funds in government accounts has taken place by using forged and false documents and sending the forged and false bank account statement to concerned account holders of Haryana government”. SV & ACB Director General A S Chawla has stated that the investigation is likely to continue for a long time.